The Comet Ridge Ltd. (ASX: COI) share price is rocketing, up 22% in afternoon trade.

Below, we take a look at the ASX resource explorer’s acquisition announcement.

What acquisition announcement did Comet report?

The Comet Ridge share price is soaring after the company reported it has entered into binding agreements to acquire Australia Pacific LNG’s (APLNG) 30% interest in the Mahalo Gas Project.

Once the deal is complete, Comet Ridge’s 40% interest in Mahalo will increase to 70%.

The company also reported it has executed a funding and option agreement with its joint venture (JV) partner on the project, Santos Ltd (ASX: STO).

Located in Queensland, the Mahalo Gas Project “encompasses the ‘Shallows’ strata from surface down to the base of the Lower Mantuan Coal”. According to the release, interest in the “Deeps” will remain unchanged, with Santos and APLNG each holding 50%. Mahalo Deeps was last drilled in 1991.

On completion of the acquisition Comet Ridge will pay APLNG a cash consideration of $12 million, with an additional $8 million post-completion payment in deferred tranches.

Santos has provided the company with access to $13.15 million of debt funding, covering the cost of the upfront acquisition as well as $1.15 million in stamp duty costs.

In exchange for the loan funding, Santos has several rights to acquire interests in the project. That includes the right to acquire a 12.86% interest in from Comet Ridge at a proportional acquisition value, within 6 months of completion.

Commenting on the transactions, Comet Ridge’s managing director, Tor McCaul said:

These transactions are transformational for Comet Ridge. Built on compelling acquisition metrics, they establish a streamlined joint venture with Santos to not only progress development plans for the Mahalo Gas Project, but the whole Mahalo Gas Hub area.

The terms we have been able to agree with APLNG and Santos unlocks the potential of the entire Mahalo Gas Hub area to become a significant supplier of gas to the east coast market where industry dynamics have strengthened considerably as we continue to see a tightening of gas supply.

The Comet Ridge share price could also be getting a lift from a separate announcement released this morning. In that release, Comet reported it has entered into a binding agreement with PURE Asset Management to access a term loan facility for up to $10 million.

Comet Ridge’s chief financial officer, Phil Hicks said, “The Pure facility complements the funding arrangements that Comet Ridge has put in place with its joint venture partner, Santos Ltd, to support the company’s Mahalo Gas Hub project development strategy.”

Comet Ridge share price snapshot

Comet Ridge’s share price is up 57% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) is up 28% over that same time.

Year-to-date the Comet Ridge share price is also up 57%.

The post Why the Comet Ridge (ASX:COI) share price is rocketing up 22% today appeared first on The Motley Fool Australia.

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• Santos (ASX:STO) share price wobbling on news of Mahalo project
• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
• ASX 200 rises, Afterpay soars, Zip jumps
• Why the Oil Search (ASX:OSH) share price is roaring 5% higher today
• ASX 200 midday update: Afterpay to be acquired by Square, Oil Search to merge with Santos

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mayne Pharma Group Ltd (ASX: MYX) share price is struggling to catch a bid in today’s session.

Shares in the pharmaceutical company are struggling after the company announced it is facing a class action.

Here’s what the company announced and why investors are exercising caution over the Mayne share price.  

Mayne share price dips on proceeding of class action

Earlier today, Mayne announced that the company has been slapped with an investor class action.

According to the announcement, legal proceedings have been lodged in the Supreme Court of Victoria.

Mayne noted the class action alleged the company undertook misleading or deceptive conduct. In addition, the action alleges the company was in breach of continuous disclosure obligations over alleged anti-competitive conduct in the United States.

Australian law firm Phi Finney McDonald brought the legal proceedings. The law firm is acting on behalf of all investors who acquired shares in Mayne between 24 November 2014 and 15 December 2016.

In the company’s announcement, Mayne emphatically denies any and all allegations of wrongdoing. Accordingly, the company noted it will vigorously defend the proceedings.

More on the class action against Mayne

According to the website of Phi Finney McDonald, it is alleged Mayne participated in a conspiracy to restrain trade, inflate the price of generic pharmaceuticals, and reduce competition.

The class action against Mayne follows an announcement on 15 December 2016. On that day, the Attorney General of Connecticut commenced anti-trust civil proceedings against a number of pharmaceutical companies, including Mayne Pharma Inc (US).

There are 3 main allegations against Mayne Pharma. In particular, it’s alleged the company agreed to price-fixing and market-sharing arrangements from late 2014.

Snapshot of the Mayne share price

Mayne Pharma is a specialty pharmaceutical company focused on commercialising novel and generic pharmaceuticals. The company also provides contract development and manufacturing services to clients. Mayne Pharma has two facilities based in Salisbury, Australia and Greenville, USA.  

Despite soaring to a 52-week-high in mid-April, the Mayne Pharma share price has struggled in 2021. Including today’s price action, shares in the pharmaceutical company are down more than 7% year-to-date.

At the time of writing, the Mayne share price is trading 6% lower for the day at 31.5 cents.

The post Mayne Pharma (ASX:MYX) share price drops on class action appeared first on The Motley Fool Australia.

More reading

• Why the Comet Ridge (ASX:COI) share price is rocketing up 22% today
• Santos (ASX:STO) share price wobbling on news of Mahalo project
• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Facebook is on a collision course with Shopify
• Humm (ASX:HUM) share price rises after partnership announced

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price is currently in the red after an update was released about the Mahalo gas project.

Santos’ joint venture partner Comet Ridge Ltd (ASX: COI) announced it has increased its ownership of the project and Santos will likely be able to do the same.

The Mahalo gas project is located near Gladstone in Queensland. The companies hope it will supply gas to the east coast of Australia in the future.

Right now, the Santos share price is $6.45, 0.62% lower than its previous close. At one point it was down as much as 0.93%, but also edged into the green during morning trade.

Let’s take a closer look at today’s news from Santos.

Santos might up its Mahalo holding

The Santos share price is slipping despite news it will be providing a loan to Comet Ridge in exchange for the option to increase its hold in the Mahalo project to 42.86% pro rata.

Comet Ridge will use a $13.5 million loan from Santos to acquire Australia Pacific LNG Pty Ltd’s 30% share of the project, increasing its stake to 70%.

Santos will then have the option to negotiate with Comet Ridge to increase its stake up to a holding of 50%.

It will also be able to negotiate to acquire 50% of Comet Ridge’s Mahalo North and Mahalo East assets.

The companies plan for Comet to drive it to a final investment decision, after which Santos will take over as the project’s development operator.

The Mahalo project encompasses the shallow portion of the project. The deep portion of the area is owned in equal parts by Santos and Australia Pacific LNG.

The project’s development has been slowed by COVID-19 and the price of oil declining during the pandemic.

Commentary from management

Santos’ managing director and CEO Kevin Gallagher commented on the news that could be driving the Santos share price today. He said:

Santos is keen to continue to develop our Queensland resources and this transaction provides another option for additional gas reserves. We look forward to working collaboratively with Comet Ridge to assess the potential of the Mahalo gas project.

Santos share price snapshot

The Santos share price is in the green by the skin of its teeth.

Right now, it’s about 2% higher than it was at the start of the year. Fortunately, it’s gained about 21% since this time last year.

The post Santos (ASX:STO) share price wobbling on news of Mahalo project appeared first on The Motley Fool Australia.

More reading

• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
• ASX 200 rises, Afterpay soars, Zip jumps
• Why the Oil Search (ASX:OSH) share price is roaring 5% higher today
• ASX 200 midday update: Afterpay to be acquired by Square, Oil Search to merge with Santos
• Santos (ASX:STO) share price rises on revised merger proposal

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is trading lower. The benchmark index is currently down 0.3% to 7,470.4 points.

Here’s what is happening on the ASX 200 on Tuesday:

Afterpay share price jumps

The Afterpay Ltd (ASX: APT) share price is jumping again on Tuesday. This follows a positive response on Wall Street to Square’s acquisition of the company. This led to the Square share price jumping 10% overnight. And given that the acquisition is an all-scrip deal, any rises in the Square share price will be great news for Afterpay shareholders. Square has offered 0.375 shares per Afterpay share. This equates to approximately $138.78 per share today following last night’s rise.

Qantas stands down crew

The Qantas Airways Ltd (ASX: QAN) share price is trading lower today after the airline operator announced that it would be standing down 2,500 crew for two months. Qantas is making the move after recent lockdowns and border closures led to expectations of an extended period of reduced flying.

Credit Corp lower following FY 2021 results

The Credit Corp Group Limited (ASX: CCP) share price is under pressure today following the release of its full year results. The debt receivables company reported an 11% increase in net profit after tax to $88.1 million in FY 2021. While this was in line with its guidance range of $85 million to $90 million, investors may be a touch concerned with its outlook for FY 2022. It is forecasting a 3.5% decline to 7.8% increase in net profit.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Afterpay share price with a 12% gain. This follows a rise in the Square share price overnight. The worst performer on the ASX 200 has been the Pointsbet Holdings Ltd (ASX: PBH) share price with a 12% decline. The catalyst for this was the completion of its institutional entitlement offer and placement.

The post ASX 200 midday update: Afterpay jumps again, Qantas stands down crew appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price slips as airline stands down 2,500 crew
• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
• Why the PointsBet (ASX:PBH) share price is crashing 12% lower on Tuesday
• Credit Corp (ASX:CCP) share price charges 6% higher after strong FY 2021 result
• Here are 4 sure-fire ways to catch the next 10-bagger

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Facebook‘s (NASDAQ: FB) core business has always been advertising. The company sells highly targeted ads alongside user-generated content to its audience of nearly half of the world. It’s a great business model and one that just brought in more than $12 billion in operating income in its second quarter.

Now, Facebook is thinking beyond ads. Apple’s (NASDAQ: AAPL) app-tracking transparency initiative has made tracking more difficult for Facebook and its advertisers, adding incentives for the company to expand beyond ads.

CEO Mark Zuckerberg spent much of his time on the recent earnings call talking about the company’s push with creators, commerce, and the next computing platform, which he dubbed the metaverse. Of those three growth areas, commerce is the most logical extension for Facebook’s business.

It already has relationships with more than 7 million small and medium-sized businesses (SMBs), not to mention the world’s biggest brands. Many of those SMBs see Facebook as a crucial component of their businesses for things like customer acquisition or even as a full-on digital storefront.

Historically, SMBs used Facebook to attract customers, who then click out of Facebook’s ecosystem to go to the brand’s own website. For e-commerce companies, those sites are often run by Shopify Inc (NYSE: SHOP). Since Facebook is the primary acquisition tool for many of these businesses and has a wealth of data from users and ad clicks, it makes sense for the company to capture all of the value of those transactions, up to the payments themselves, rather than just the ad spend.

Commerce isn’t new for Facebook. The social media giant had previously launched “Shops” on Facebook and Instagram, but it seems to sense opportunity in e-commerce in a way that it hadn’t before.

Opportunity knocks

Annual e-commerce sales are on the verge of topping $1 trillion in the U.S. Globally, that number is significantly higher. For a company the size of Facebook, online commerce is one of the few businesses that’s big enough to really move the needle.

Zuckerberg explained his thinking on commerce simply on the call, saying, “Our approach is to work our way down the stack and build world class services at every layer of commerce — starting from discovery at the top of the stack all the way down to payments.”

In other words, Facebook wants to keep the entire shopping experience on its platform, avoiding the need for users to bounce off its platform onto a brand website or a Shopify store. Zuckerberg noted that clicking on an ad link that takes users off a Facebook site often means having to reenter your payment information, leading to a bad user experience.

Facebook now has 1.2 million stores on Facebook and Instagram Shops. By comparison, Shopify finished last year with 1.75 million merchants using its software. Facebook isn’t far behind the leading e-commerce platform.

What it means for Shopify

Shopify provides software to run e-commerce businesses, and after Amazon Inc (NASDAQ: AMZN), the company has been the biggest winner in online retail. But Apple’s crackdown on ad targeting could be a problem for Shopify because it directly impacts the small businesses the company depends on.

The move is also incentivising Facebook, which is probably Shopify’s largest source of traffic, to invest in its own commerce platform, ultimately moving transactions from Shopify to Facebook. As Facebook improves Shops, it could peel away some of Shopify’s business, especially if it offers SMBs a lower customer-acquisition cost.

For now, Shopify investors don’t seem to have much to worry about. The company put up blistering growth during the pandemic, and in the second quarter, posted 57% revenue growth to $1.12 billion. It’s also solidly profitable. Its outlook called for continued strong growth, though at a more normalised pace than last year.

Zuckerberg acknowledged the commerce initiative would be a long-term one, so it’ll likely take years before Facebook becomes a major player in e-commerce. The Facebook chief said: “This is a long-term strategy and it’s going to take a while before it’s meaningful — especially given the scale of our ads business already — but I’m confident that it’s the right long-term bet and product direction.”

The e-commerce pie is growing and could be big enough to satisfy both Facebook and Shopify, but Facebook’s efforts to keep sales in its ecosystem will have an effect on Shopify. Investors in the latter company should keep an eye on what’s happening with Facebook Shops, especially in relation to Apple’s ad-targeting crackdown. The more Apple squeezes Facebook, the more Facebook is likely to squeeze Shopify, as a result.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Facebook is on a collision course with Shopify appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jeremy Bowman owns shares of Amazon and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, Facebook, and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Humm Group Ltd (ASX: HUM) share price is in the green on Tuesday morning. This comes as the financial services company announces a new partnership.

At the time of writing, Humm shares are up 1.24% to 98.2 cents apiece.

What did Humm update the ASX with?

Investors appear to be welcoming the company’s latest positive update.

According to its release, Humm advised it has partnered with LG Energy Solution to enter the Virtual Power Plant (VPP) market.

VPP is considered a cleaner alternative to traditional power stations that consume a large amount of space. As such, VPP delivers power by combining the energy from rooftop solar panels and battery storage systems around the country. This technology can be remotely controlled, distributing electricity across the grid.

In addition, the battery storage systems can put excess power in the bank for when it’s needed during peak times.

The collaboration between both parties is a major win as Humm is the leading financier of solar installations in Australia. The company has financed more than $2.2 billion in residential rooftop solar panels since its inception in 2010.

On the other hand, LG Solution is a world leader in lithium battery technology for residential, grid-scale, IT, appliance, and electric vehicle use. It is also recognised as the most popular brand with installers looking for solar energy solutions.

Humm estimates the solar and battery market will more than double to around $5 billion per year by 2025. VPP is predicted to become the leading category for solar and battery sales over the medium term.

Both phase 1 and 2 VPP trials in South Australia have been successful with a network of more than 1,000 energy storage systems. Humm is aiming to have 10,000 virtual network and energy storage systems installed by the end of FY23.

Renewable energy retail company Diamond Energy has been appointed as the partnership’s electricity retailer.

What did management say?

Humm CEO Rebecca James commented:

Making renewable energy affordable for Australian homeowners has been a cornerstone of Humm for over a decade now, with more than 350 active solar merchants and $547 million of Climate Bond certified Green bonds issued during this time.

Forging into the VPP market, with a technology partner like LG Energy Solution and a retail partner like Diamond Energy will enable us to deliver quality, simplicity and great energy savings to our customers.

VPP is a natural progression for us with 265,000 solar systems financed since 2010. This new channel advances Humm’s leadership position by adding to our existing in-home sales and corporate energy finance channels as green energy continues to evolve.

About the Humm share price

It’s been a whirlwind year for Humm shareholders, with the company’s share price down more than 12% year-to-date.

On valuation metrics, Humm presides a market capitalisation of roughly $485.3 million, with approximately 495 million shares outstanding.

The post Humm (ASX:HUM) share price rises after partnership announced appeared first on The Motley Fool Australia.

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• Why CSL, Humm, IntelliHR, & Vulcan shares are pushing higher
• Humm (ASX:HUM) share price zooms 6% higher after doubling FY 2021 profit
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The American Rare Earths Ltd (ASX: ARR) share price has jumped into the green today.

At one stage this morning, the shares were skyrocketing by 19%. However, at the time of writing they have partially retreated and are swapping hands for 9.4 cents, still a gain of 11.9% on yesterday’s closing price.

The move comes as the company released drilling estimates from its La Paz site earlier today.

Quick refresher on American Rare Earths

American Rare Earths is in the mining and exploration business.

Its geographical footprint lies in the Murray Basin and at Broken Hill, alongside its interests at the La Paz Rare Earth project and the Thackaringa Cobalt project.

American Rare Earths has a market capitalisation of $28.9 million at the time of writing.

What did the company release?

The company outlined drilling at La Paz delivered an “indicated resource estimate increase” of 117%.

Indicated resource estimates exhibited a growth from 16.2 million tonnes (MT) to 35.2MT, whilst JORC compliant resource tonnage increased by 33.1%.

Results of such magnitude demonstrates the La Paz site could be “one of the largest rare earths projects in North America”, according to the company.

Assay results obtained from this site also show it is an “environmentally stable resource” compared to “most other projects on the market”.

Additionally, American believes the announcement “supports the development of US domestic rare earths supply chain”.

Moreover, it also “highlights the strategic value of (the) assets” to the US Government.

Investors have favoured the announcement, pushing the American Rare Earths share price 19% into the green at one point today.

American Rare Earths shares are now exchanging hands at 9.4 cents, well below their 52-week high of 23.5 cents.

American Rare Earths share price snapshot

The American Rare Earths share price has posted a year-to-date return of 9%. It has also gained 317% in the last 12 months.

This has outpaced the S&P / ASX 200 Index (ASX: XJO)’s return of approximately 26% over the past year.

The post Why the American Rare Earths (ASX:ARR) share price soared 19% today appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Patrys Limited (ASX: PAB) shares are tumbling in late morning trade. At the time of writing, the Patrys share price has slumped 16.33% following the company’s latest announcement.

Below we take a look at the ASX healthcare company’s update on its clinical trial preparation.

What update did Patrys report?

The Patrys share price is tanking after the company reported there were unanticipated delays in its PAT-DX1 clinical trial program.

Across a number of pre-clinical studies, PAT-DX1 has demonstrated significant ability to kill cancer cells.

In February, Patrys reported it had selected a “stable, high-yielding cell line suitable for the commercial production of clinical-grade PAT-DX1”. The company’s commercial contract manufacturer used this cell line to prepare the production and purification processes at its facility.

While the required materials were ordered 6 months in advance, the company reported that the COVID-19 pandemic has disrupted global reagent production and supply chains. Due to the proprietary nature of the reagents, Patrys said it is unable to source them from other suppliers.

Patrys now expects the engineering run for PAT-DX1 will be pushed back to the fourth quarter of this year. This will delay the start of its GMP toxicology studies to the first quarter of 2022, “pending the availability of GMP grade PAT-DX1”.

The company anticipates it will now submit a Human Research Ethics Application (HREA) for the phase 1 clinical trial in the second half of 2022.

Commenting on the delay, Patrys CEO James Campbell said it was obviously disappointing for the company and its loyal shareholders. He stressed that the delay is “based solely on global supply chains, not technical obstacles”.

Campbell added:

The recent data from ongoing pre-clinical studies has been extremely positive and has highlighted the many ways our deoxymabs may be able to improve the health of patients with a range of difficult to treat cancers.

We continue to work with our global suppliers to prepare for and initiate the first PAT-DX1 clinical trial in late 2022. In addition, we will continue to pursue a range of unique development opportunities for both PAT-DX1 and PAT-DX3.

Patrys share price snapshot

Despite today’s slide, the Patrys share price remains up more than 300% over the past 12 months, well outpacing the 28% gains posted by the All Ordinaries Index (ASX: XAO).

Year to date, the Patrys share price also continues to charge ahead, up 105% in 2021.

The post Here’s why the Patrys (ASX:PAB) share price is tumbling 16% today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Patrys (ASX: PAB) share price is climbing 13% today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Ltd (ASX: QAN) share price is down 1.86% in morning trade as the company announced it is standing down 2,500 crew for a likely period of 2 months.

Qantas is currently trading for $4.47 per share.

Why the temporary stand down?

The COVID-19 outbreak in New South Wales has seen domestic borders between the nation’s biggest states sealed.

While there is hope that travel between Victoria, South Australia and Queensland will resume once new community infections are eliminated, Qantas Group CEO Alan Joyce believes the Greater Sydney area won’t open for 2 or more months.

According to Joyce:

Based on current case numbers, it’s reasonable to assume that Sydney’s borders will be closed for at least another two months. We know it will take a few weeks once the outbreak is under control before other states open to New South Wales and normal travel can resume.

Qantas stressed that there will be no job losses for the 2,500 frontline Qantas and Jetstar employees being stood down.

The domestic pilots, cabin crew and airport workers impacted are mostly based in New South Wales. However, Qantas noted that employees in other states will also be affected due to the nature of its travel business. Employees will receive 2 weeks’ notice and paid through mid-August during the stand down.

“This is clearly the last thing we want to do but we’re now faced with an extended period of reduced flying and that means no work for a number of our people,” Joyce said. “Qantas and Jetstar have gone from operating almost 100 per cent of their usual domestic flying in May to less than 40 per cent in July because of lockdowns in three states.”

Joyce voiced hope that domestic travel levels may return to 50–60% of normal if Victoria, South Australia and Queensland reopen for travel.

He also noted that while the new stand down is “extremely challenging” for the 2,500 people involved, that things look very different to last year when the airline was forced to stand down more than 20,000 people, with most of its aircraft mothballed for months.

On the domestic front, Joyce sounded an optimistic tone, pointing to the importance of the national vaccine rollout. “Fortunately, we know that once borders do reopen, travel is at the top of people’s list and flying tends to come back quickly, so we can get our employees back to work,” he said.

Internationally, the outlook is murkier. According to Joyce:

The challenge around opening international borders remains. There are still several thousand Qantas and Jetstar crew who normally fly internationally and who have been on long periods of stand down since the pandemic began. Higher vaccination rates are also key to being able to fly overseas again and finally getting all our people back to work.

Qantas share price snapshot

Qantas’s share price has gained 41% over the past 12 months, compared to a gain of 26% on the S&P/ASX 200 Index (ASX: XJO).

Year-to-date, the Qantas share price has struggled, currently down 8% in 2021.

The post Qantas (ASX:QAN) share price slips as airline stands down 2,500 crew appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Crown Resorts Ltd (ASX: CWN) share price is in the green despite the company announcing Crown Melbourne’s CEO is leaving his role.

Xavier Walsh will step down from the top job at Crown Melbourne on 20 August.  He will continue to be available to the company until 9 December.

Right now, the Crown share price is $8.97, 0.45% higher that its previous closing price.

Let’s take a closer look at the latest news from Crown.

Crown Melbourne CEO steps down

The Crown share price is gaining this morning following news Crown Melbourne’s CEO will step down.

Walsh has held the top job at the Southbank casino since December 2020. Prior to his role as CEO of Crown Melbourne, he held various chief operating officer roles with Crown entities.

Crown stated it will appoint an interim CEO following consultation with the Victorian Commission for Gambling and Liquor Regulation.

Walsh’s resignation follows revelations at the Royal Commission into the suitability of Crown to hold Melbourne’s casino licence that Walsh was aware Crown Melbourne underpaid tax in 2018.

On June 7, the Commission heard Walsh began an internal investigation into the matter after the Royal Commission was announced. Interested readers can find a transcript of the revelations here.

The Crown share price fell 1.3% on the day the Commission heard the allegations.

Additionally, during the Royal Commission’s closing remarks, counsel assisting the Commission Adrian Finanzio said unless Crown makes changes to its leadership, it is unsuitable to hold a casino licence.

Finanzio said of Walsh:

In the time since he’s been thrust into positions of greater authority he has, with respect, not risen to the occasion in a way which can give any confidence that he has the necessary qualities to be a suitable associate of Crown.

Finanzio also said Crown’s chair Helen Coonan was unsuitable for her role.

The Crown share price fell 2.6% after the comments.

Closing submissions to the Royal Commission will be heard today.

Crown share price snapshot

Despite being in the green today, the Crown share price has been struggling lately.

Right now, it’s 7% lower than it was at the start of 2021. However, it has gained almost 3% since this time last year.  

The post Crown (ASX:CWN) share price up despite Crown Melbourne CEO exiting appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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